Donna M. Orsino - Page 6

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          not know Mr. Orsino received from his mother a bond to which he             
          held title.  Petitioner had no awareness of the bond’s existence            
          and, thus, could not have actual knowledge of interest from the             
          bond.  Petitioner’s contention that she did not have clear                  
          awareness of the item of income relies not on ignorance of the              
          law, but on ignorance of a material fact.  See id.  Accordingly,            
          pursuant to section 6015(c), petitioner is relieved of liability            
          for the tax deficiency attributable to interest from the savings            
          bond.                                                                       
               Pursuant to section 6015(f), respondent is granted                     
          discretion to award relief from joint and several liability if              
          the facts and circumstances indicate that it would be inequitable           
          to hold the spouse seeking relief liable for the deficiency.  We            
          conclude that it would not be inequitable to hold petitioner                
          liable for the deficiency attributable to Mr. Orsino’s                      
          compensation and 401(k) withdrawal.  Petitioner knew of the                 
          omitted income and 401(k) withdrawal, did not establish economic            
          hardship, and benefited significantly from the omitted                      
          compensation (i.e., funds were deposited into a joint account)              
          and 401(k) withdrawal (i.e., petitioner is currently receiving              
          $400 monthly payments as her share of the 401(k) withdrawal).               
          See Rev. Proc. 2000-15, 2000-1 C.B. 447.  In addition, both Mr.             
          Orsino and petitioner incurred the tax debt.  Therefore, the                
          marital settlement agreement does not shift all of the liability            






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